Bilibili Inc. Earnings
Bilibili Inc., a prominent video community platform celebrated among young generations in China, recently published its unaudited financial results for the fourth quarter and the fiscal year ending December 31, 2024. The company witnessed robust growth across its key financial metrics, signaling strength in its commercialization efforts.
Bilibili Inc. Results
Below is a summary of Bilibili's key financial results for the fourth quarter and the full fiscal year 2024:
| Financial Metric | Q4 2024 (in RMB) | Q4 2024 (in USD) | YoY Growth (%) | FY 2024 (in RMB) | FY 2024 (in USD) | YoY Growth (%) |
|---|---|---|---|---|---|---|
| Total Revenue | 7.73 billion | 1,059.6 million | 22 | 26.83 billion | 3,675.9 million | 19 |
| Gross Profit | 2.79 billion | 382.0 million | 68 | 8.77 billion | 1,202.0 million | 61 |
| Net Profit | 88.9 million | 12.2 million | - | - | - | - |
| Adjusted Net Profit | 452.0 million | 61.9 million | - | - | - | - |
| Operating Cash Flow | 1.40 billion | 191.9 million | - | 6.01 billion | 824.0 million | - |
| Daily Active Users (DAUs) | 103.0 million | - | - | - | - | - |
| Basic and Diluted EPS | 0.22 | 0.03 | - | - | - | - |
| Adjusted Basic and Diluted EPS | 1.08 | 0.15 | - | - | - | - |
While pleased with the overall increases, it's essential to emphasize the specifics of where Bilibili demonstrated significant gains:
- Fourth Quarter Highlights:
- Total net revenues rose by 22%, amounting to RMB7.73 billion ($1,059.6 million), largely due to increased advertising and mobile gaming revenues.
- The fourth quarter stood out as the company achieved profitability, a first in its history with GAAP net profit reaching RMB88.9 million ($12.2 million).
-
The surge in adjusted net profit to RMB452.0 million ($61.9 million) reflects enhanced operational efficiency and cost management.
-
Fiscal Year Overview:
- Total net revenues for 2024 expanded to RMB26.83 billion ($3.68 billion), marking a 19% year-over-year increase, showcasing strong underlying business growth.
Revenue Breakdown
Here's a detailed revenue segment breakdown for Bilibili's performance in the fourth quarter and the fiscal year 2024:
| Revenue Segment | Q4 2024 Revenue (in RMB) | Q4 YoY Growth (%) | FY 2024 Revenue (in RMB) | FY YoY Growth (%) |
|---|---|---|---|---|
| Advertising | 2.39 billion | 24 | 8.19 billion | 28 |
| Mobile Games | 1.80 billion | 79 | 5.61 billion | 40 |
| Value-Added Services (VAS) | 3.08 billion | 8 | 11.00 billion | 11 |
| IP Derivatives & Others | 464.9 million | -16 | 2.03 billion | -7 |
Analysis: - Advertising revenue continues to demonstrate strength with a 24% increase over the last quarter, driven by enhanced product offerings. The mobile games segment was particularly notable; its strong growth at 79% stemmed from the successful launch and popularity of Bilibili's exclusive game, "San Guo: Mou Ding Tian Xia". On the other hand, revenues from IP derivatives and others showed a decline, possibly reflecting challenges in this segment or shifts in consumer preferences.
Key Developments
Bilibili's development story in 2024 is a testament to strategic initiatives paying off: - Commercialization Strategy: The company made remarkable advancements in its commercialization strategy, enhancing monetization efficiency as demonstrated by the significant rise in gross profit margin from 26.1% in Q4 2023 to 36.1% in Q4 2024. - Operational Efficiency: A notable achievement was the 10% decline in total operating expenses for the fourth quarter compared to the previous year, led by decreased research and development expenses due to completed and/or terminated projects.
Comments from Company Officers
"The conclusion of 2024 marks a pivotal achievement as we reached our first GAAP profitability, affirming our dedicated efforts in enhancing commercialization efficiency," stated Mr. Rui Chen, Chairman and CEO. He further elaborated on the year's accomplishments in boosting the advertising and mobile games sectors, emphasizing future growth expectations with emerging AI technologies.
Mr. Sam Fan, CFO, accentuated the impressive upward trend in advertising and mobile games, reinforcing the company's profitability target with this substantial operating cash flow generation.
Dividends and Share Repurchases
In 2024, Bilibili reinforced shareholder value through a series of significant decisions: - Implementation of a share repurchase program permitting up to $200 million in public securities repurchase. By year-end, roughly 0.84 million ADSs were repurchased for a total outlay of $16.4 million. - A strategic repurchase of approximately US$419.1 million of the 0.50% Convertible Senior Notes was completed, improving the firm's capital structure.
Bilibili Inc Stock Forecast
Looking forward, Bilibili's stock outlook is optimistic based on its earnings momentum and market positioning: - High Projection: With an eye on ongoing growth in its key revenue segments and profitability, Bilibili could see its stock price reach highs around $52 in the coming year. - Low Projection: Given market volatility and potential challenges in the broader tech industry or regulatory environment, a more cautious outlook might project stock prices maintaining around $32.
Continued focus on strategic initiatives, coupled with evolving AI advancements, positions Bilibili to harness emerging opportunities, sustaining its trajectory toward long-term profitability and shareholder value creation.
